Enhanced method and system for providing supply chain execution processes in an outsourced manufacturing environment

ABSTRACT

An exemplary embodiment of the invention relates to a method and system for facilitating supply chain processes in an outsourced manufacturing environment comprising an original equipment manufacturer, at least one contract manufacturer, and at least one supplier. The method includes placing a purchase order with the contract manufacturing entity via an outsourced supply chain tool; filtering out parts listed on the purchase order that are flagged for special execution; and placing a second purchase order for flagged parts with the supplier. The second purchase order contains instructions for providing the flagged parts to the contract manufacturer. The method also includes coordinating delivery and payment transactions for the flagged parts and for finished products; monitoring associated activities of the entities involved; and resolving associated issues. The system includes a manufacturing entity comprising: a server executing a plurality of applications including an outsourced supply chain tool for implementing supply chain execution processes; a terminal and data storage device both in communication with the server; network links to a manufacturing division, a plurality of trading partner systems, a customer focus team system, and a commodity team council system; and a decentralized file database for providing supply chain execution data specific to a contract manufacturer system.

BACKGROUND

[0001] This invention relates generally to electronic procurement andsupply chain management, and more particularly, the present inventionrelates to a method and system for providing enhanced supply chainexecution processes in an extended enterprise environment.

[0002] Effective supply chain management is becoming increasinglyimportant to the electronics industry. In today's global economy,particularly with respect to computer technology, life cycles and pricesrelated to electronics such as personal computers, PDAs, cellulartelephones, etc., have dramatically declined over the last ten years.Further, the growth of e-commerce on the Internet creates additionalpressures on this industry as traditional geographic barriers are brokendown and new businesses/competitors are entering the market. In order tostay competitive, these market dynamics require electronics businessesto develop and introduce new products faster and cheaper than thecompetition. To meet this demand, new and enhanced business solutionsare critical.

[0003] One way in which businesses are meeting these challenges is byoutsourcing production of products to third parties. Outsourcing applieswhere the original manufacturer (called an Original EquipmentManufacturer, or OEM) buys assemblies in bulk from third-party contractmanufacturers and then customizes them for a particular application. Itthen markets and sells the customized equipment under its own name. Byoutsourcing the manufacturing and assembly of these goods, establishedOEMs are able to focus on other business areas such as new productdevelopment and customer relationship management. Additionally, asproduct designs and components are becoming increasingly complex andfrequently updated, a contract manufacturer with specialized skills maybe better equipped to accommodate the changing technology. Byoutsourcing to meet peak demands, an OEM may be able to avoid having tobuild new facilities and/or hire new people.

[0004] In an effort to facilitate the outsourcing processes, OEMs andtheir manufacturers and suppliers are forming collaborative electronicnetworks (or extended enterprises) whereby entities within the network,or supply chain, seemingly operate and exist as a single enterprise withrespect to the products being produced. In order for these separateentities to effectively operate as one, they must be able to synchronizeand share information and fully integrate their existing businessprocesses. Information shared, such as product descriptions, bills ofmaterials (BOMs), approved manufacturers/suppliers lists, etc., must becomplete, accurate and up-to-date. Additionally, architectures andapplications based on open standards are required in order for completecollaboration in real time within and among the supply chain entities tooccur. Few existing applications provide integrated supply chainmanagement solutions and none of these provide complete, synchronizedcollaboration abilities.

[0005] For example, the bidding process between an OEM and its contractmanufacturers and suppliers is riddled with inefficiencies. Oftentimesan OEM is able to procure parts components for its ‘in-house’ assembliesat a much cheaper price than its contract manufacturers are able to dueto the large volumes of purchasing it engages in. A contractmanufacturer who pays more than the OEM for the same componentnecessarily passes on this extra cost to the OEM once the assembly iscompleted. The OEM, in turn, must sell the finished product to itscustomers at a higher cost. If the contract manufacturer could obtainthe benefit of the OEM's lower contract prices, it could produce lowercost assemblies for the OEM, providing the OEM with instant costsavings. A process is therefore desirable that can improve the existingparts procurement and production planning system and process between anOEM and its suppliers and contract manufacturers by facilitating theidentification, communication, and execution of cost savingsopportunities.

BRIEF SUMMARY

[0006] An exemplary embodiment of the invention relates to a method andsystem for facilitating supply chain processes in an outsourcedmanufacturing environment comprising an original equipment manufacturer,at least one contract manufacturer, and at least one supplier. Themethod includes placing a purchase order with the contract manufacturingentity via an outsourced supply chain tool; filtering out parts listedon the purchase order that are flagged for special execution; andplacing a second purchase order for flagged parts with the supplier. Thesecond purchase order contains instructions for providing the flaggedparts to the contract manufacturer. The method also includescoordinating delivery and payment transactions for the flagged parts andfor finished products; monitoring associated activities of the entitiesinvolved; and resolving associated issues. The system includes amanufacturing entity comprising: a server executing a plurality ofapplications including an outsourced supply chain tool for implementingsupply chain execution processes; a terminal and data storage deviceboth in communication with the server; network links to a manufacturingdivision, a plurality of trading partner systems, a customer focus teamsystem, and a commodity team council system; and a decentralized filedatabase for providing supply chain execution data specific to acontract manufacturer system.

BRIEF DESCRIPTION OF THE DRAWINGS

[0007] Referring now to the drawings wherein like elements are numberedalike in the several FIGURES:

[0008]FIG. 1 is a block diagram of a network system on which theoutsourced supply chain application is executed in an exemplaryembodiment of the invention;

[0009]FIG. 2 is a flowchart of the outsourced supply chain executionprocess relating to a buy/sell technique;

[0010]FIG. 3 is an exemplary exception approval form accessible via theoutsourced supply chain tool;

[0011]FIG. 4 is an exemplary preferred sourcing plan with criteria; and

[0012]FIG. 5 is an exemplary display of benchmark data used forassisting in the establishment of a preferred sourcing plan.

DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT

[0013] In an exemplary embodiment, the outsourced supply chain toolautomates supply chain processes in order to streamline the productionand distribution of goods in a manufacturing environment. It involvesgenerating a price protection plan from data gathered such asforecasting and demand data, supplier commitments, contract manufactureraward data, and logistical data and executing the plan according tobusiness rules adopted via the tool. Price protection plans aregenerally cost-savings strategies determined to be of some financial orlogistical advantage to a business. The tool also monitors correlatedactivities such as compliance with terms and conditions set forth in theprice protection plans and provides performance measurements forevaluation and plan updates.

[0014] In terms of structure, reference is now made to FIG. 1. Thereindepicted is a block diagram representing a network system 100 forimplementing the outsourced supply chain tool of the present invention.System 100 includes an OEM enterprise system 150 comprising a server 102connected through a communications network 104 to a terminal 106. OEMenterprise system 150 may be central office or corporate facility of anOEM business. Network 104 may comprise a LAN, a WAN, or other networkconfiguration known in the art. Further, network 104 may includewireless connections, radio-based communications, telephony-basedcommunications, and other network-based communications. Terminal 106 maybe a network PC, or ‘dumb client’, which allows users access toapplications executed via server 102 in a client/server architecturemode. Client/server network configurations are well known in theindustry and will be appreciated by those skilled in the art.

[0015] Enterprise system 150 is preferably operating web server softwaredesigned to accommodate various forms of communications via internalnetwork 104 and any external network (e.g., Internet, Extranet). Suchforms of communications include voice, video, and text. Any web serversoftware or similar program that handles general communicationsprotocols and transport layer activities could be used as appropriatefor the network protocol in use. For purposes of illustration,enterprise system 150 is running Lotus Domino(TM) for communicating withexternal entities over the Internet and Lotus Notes(TM) for its internal“intranet” communications, however, any compatible e-mail-integrated,web-enabled collaborative software could be used. Enterprise system 150preferably executes the outsourced supply chain tool of the presentinvention, however, it could alternatively be executed under anoutsourced arrangement via an Applications Services Provider (ASP) undera subscription agreement or other suitable mechanism. The outsourcedsupply chain application may be one of many business applicationsemployed by OEM enterprise 150 which, in combination, constitute itsEnterprise Resource Planning and Materials Requirements Planning suites.Enterprise system 150 may also execute a bridging tool for integratingdata from various databases utilized by enterprise system 150 formapping together pertinent physical attributes for parts on a BOM (e.g.,part number, part name, and description) with relevant, associatedbusiness characteristics such as special negotiated prices and contractterms from which enterprise system 150 and/or its representatives canreview and identify cost savings opportunities and develop a priceprotection plan therefrom. This tool can be proprietary or may be theA-Source tool and bridging application disclosed in U.S. patentapplication Ser. No. 09/730,683 entitled “Parts Requirement PlanningSystem and Method Across an Extended Supply Chain”, filed on Dec. 6,2000, which is incorporated herein by reference in its entirety.Enterprise system 150 may also execute one or more tools forfacilitating the transfer and execution of electronic changenotifications (ECNs) and end-of-life (EOL) notices and integrating thisinformation into its MRP system. One such tool is disclosed in patentapplication Ser. No. 09/658,257 entitled, “E-Collaboration CommodityManagement System and Method”, filed on Sep. 8, 2000, which isincorporated herein by reference in its entirety.

[0016] Data storage device 120 is also included in enterprise system 150and may be any form of mass storage device configured to read and writedatabase type data maintained in a file store (e.g., a magnetic diskdata storage device). Information stored in data storage device 120 maybe retrieved and manipulated by database management software executedvia server 102 such as IBM's DB/2® software. Data storage device 120provides a repository for a variety of databases, including a logisticsdatabase (e.g., a database for storing component level demand detail), aparts catalog database, administrative database (e.g., for storingapproved vendor lists, access and security authorizations, etc.), anddecentralized file (DCF) database 122. DCF database 122 will beexplained further herein. Also stored in data storage device 120 may bea catalog or collection of tables used by the bridging componentdescribed above in conjunction with the Outsourced supply chain tool inorder to integrate various types of data received from differentsources. Although a client/server system architecture has been describedfor implementing the outsourced supply chain tool, it is understood thatalternative network configurations known in the art may be utilized byenterprise system 150 in order to realize the advantages of the presentinvention. An outsourced supply chain (OSC) group 110 at enterprisesystem 150 administers and monitors the execution and performance of theoutsourced supply chain tool.

[0017] Division 190 represents a manufacturing facility of enterprisesystem 150. Division 190 purchases select products and/or assembliesfrom its contract manufacturing trading partners. Division 190 mayitself manufacture products in its in-house facilities. Division 190 mayinclude a procurement team or department which facilitates the BOM and‘request for quote’ (RFQ) processes on behalf of its manufacturingpersonnel and is preferably one of a number of divisions of enterprisesystem 150 which may be scattered around the globe. Division 190 mayinclude general computer processing devices, software, and networkcommunications capabilities for generating, communicating, and executingBOM-related information to entities within its organization as well aswith external entities and trading partners and for facilitating theobjectives set forth via the outsourced supply chain tool as will bedescribed further herein.

[0018] Contract manufacturer (CM) systems 180A-180D may be independentcommercial manufacturers doing business with enterprise system 150 underan agreement. CM systems 180A-180D may be located in various regions ofthe world and are shown in FIG. 1 to be located in the United States180A, Asia and the Pacific 180B, Mexico 180C, and Europe 180D forillustrative purposes. Of course, it will be understood that any numberof countries, regions, or locations may be included in system 100 inorder to realize the advantages of the invention. Further, although onlyone contract manufacturer system is shown in each of locations180A-180D, any number of CM systems may be included in system 100.System devices utilized by CM systems 180A-180D may includecommunications hardware and software such as web-enabled general purposecomputer devices with Internet access for communicating with enterprisesystem 150, CFTs 182A-182D, and supplier systems 160A-160D as needed.Further, CM systems 180A-180D may include e-transaction capabilities fordirectly procuring components and business data pursuant to theparticular price protection plan and technique adopted by enterprise150. E-transaction software and systems such as electronic invoicing andpayment processing are well known and will be appreciated by thoseskilled in the art.

[0019] Each of customer focus team systems 182A-182D performsadministrative and support services to one or more of corresponding CMsystems 180A-180D such as facilitating the transfer and replenishment ofcomponents needed during manufacture. CFTs are preferably located nearbytheir CM systems for facilitating onsite visits and for ensuring thatongoing inventory demand issues can be addressed and resolvedimmediately. CFT systems 180A-180D also obtain and provide metrics onOSC parts and activities to OSC group 110 at enterprise system 150 fortracking the performance of CM systems and generating reports. CFTsystems may also assist the CM where shortfalls exist with supplies andcollaborate with Commodity Team Council systems (CTCs) for acquiringcritical parts. CFTs may also provide or obtain assistance on mattersrelated to VAT, import, and export issues within its territory as wellas provide support to other CFTs from other regions relating to uniqueCM issues.

[0020] Each of CFT systems 182A-182D may include general communicationscapabilities via computer processing and network devices such as thosedescribed in enterprise system 150 and/or CM systems 180. Further CFTs182A-182D are preferably situated in close or convenient proximity oftheir respective CM counterparts.

[0021] Supplier systems 160A-160D provide components and parts to OEMdivision 190 and/or one or more of CM systems 180A-180D. CTCs 162A-162Dprovide administrative and support services to their counterpartsupplier systems 160A-160D. Both supplier systems 160A-160D and CTCs162A-162D include communications capabilities for transacting businesswith OEM enterprise system 150 such as web-enabled general purposecomputing devices and Internet access or an extranet network. Suppliersystems 160A-160D may be located in any number of locations around theglobe although only four locations are shown for illustrative purposes.Further, locations of each of supplier systems 160A-160D may include anynumber of independent supplier enterprises engaged in trade with OEMenterprise system 150 and/or one or more of CM systems 180A-180D. Rolesand responsibilities of CTCs may include ensuring that all purchaseorders related to its supporting supplier(s) are timely placed; managingthe order books of its suppliers; providing OSC metrics; escalatingshortfalls identified with suppliers; assisting CFT systems in acquiringcritical parts; facilitating replenishment implementation and drive tocomplete drop shipment functions; resolving finance issues; suppliervisits, providing support for other OSC regions on unique supplierissues; providing input on supplier report cards; interfacing withcouncil chairs on contract issues, geographical allocations, suppliercredits, and letters to suppliers on transfers; etc.

[0022] Prior to executing the outsourced supply chain tool, a typicalOEM or its manufacturing division generates a request for quote (RFQ),attaching a BOM file and inviting specified CMs to bid on the items.Once the bids are received, analyzed, and an award is determined, theoutsourced supply chain tool is initiated. All or part of this processcan be accomplished electronically via software tools discussed above.

[0023] The outsourced supply chain tool enables an organization toidentify, implement, and monitor strategic cost savings techniques andexecution processes for existing supply chain functions by receiving andanalyzing data received by different sources and stored in variouslocations. The tool applies user-defined business rules to thisinformation, resulting in a consolidated business plan for leveragingand optimizing savings using fewer resources. Business rules involveadopting specified pricing techniques to various procurement scenariosand shifting specified activities or responsibilities from the OEM toits trading partners where feasible.

[0024] Examples and descriptions of execution plans for various priceprotection techniques are provided herein as follows.

[0025] Buy/Sell. OEM's outsourced supply chain team buys off OEM'snegotiated contracts at the OEM price and sells to a contractmanufacturer at an uplifted market price. The OSC team rebates thedifference between the ‘buy’ price and the ‘sell’ price to the OEMdivision purchasing the assembly from the contract manufacturer.

[0026] Direct Supplier Rebate. OEM division directs a contractmanufacturer to buy strategic parts from an approved supplier thatparticipates in the OEM direct rebate process. The supplier sellsdirectly to the contract manufacturer, then rebates the differencebetween their selling (e.g., market) price and the OEM contract price tothe OEM.

[0027] Consignment. OEM division buys strategic parts directly from anapproved supplier. The OEM division then consigns these parts to acontract manufacturer.

[0028] Buy Off Contracts. The contract manufacturer buys required partsdirectly from an approved OEM parts supplier at the OEM negotiatedprice. Prior to executing this technique, the contract manufacturer maybe required to obtain the approval of the respective commodity teamcouncil (CTC) and the component supplier via a letter of authorization(LOA).

[0029] Once a price protection plan has been agreed upon, it isimplemented via the outsourced supply chain tool in accordance withbusiness rules adopted by the OEM. A sample price protection planprocess flow relating to the buy/sell technique is highlighted in FIG.2.

[0030] OEM division 190 places an order for an assembly with one ofcontract manufacturing systems 180 at step 202 as per the contract awardagreement identified above. The purchase order is received by contractmanufacturing system 180 which then separates out designated partslisted in the order for special execution and places an order for thosespecial execution parts with the outsourced supply chain tool at step204. In turn, the outsourced supply chain tool sends the order to one ofsupplier systems 160 designated by OEM 150 according to business rulesadopted at step 206. The order specifies that these parts are to be soldto contract manufacturing system 180 at a specially-negotiated contractprice. Contract manufacturing system 180 sends a forecast to suppliersystem 160 with a copy to the outsourced supply chain tool. Contractmanufacturing system 180 then sends a pull signal to supplier system 160for delivery of these parts. Supplier system 160 drop ships the partsdirectly to contract manufacturing system 180. Contract manufacturingsystem 180 sends a receipt confirmation to the outsourced supply chaintool and supplier system 160 invoices the outsourced supply chain tool.The outsourced supply chain tool then transmits payment to suppliersystem 160. The outsourced supply chain tool invoices contractmanufacturing system 180 who then pays the outsourced supply chain. Thefinished assembly and invoice are sent from contract manufacturingsystem 180 to the OEM division 190. Payment is made from the OEMdivision 190 to contract manufacturing system 180. A monthlyreconciliation report is generated by the outsourced supply chain tooland sent to the OEM division 190.

[0031] The outsourced supply chain tool may be customized by an OEM toestablish business rules for specifying the sourcing strategy for newparts released by the OEM. The strategy, ‘CM DIRECT BUY’ may providethat the contract manufacturer be responsible for procuring the partsprovided for in the bid award agreement rather than go through a thirdparty for sourcing. Below illustrates one example illustrating apreferred sourcing strategy which is determined and set by commoditygroups. COMMODITY OEM BUY/SELL CM DIRECT BUY Resistors X Diodes X . . .Fiber Optics X

[0032] The outsourced supply chain tool allows authorized entities torequest exceptions to these rules providing additional flexibility. Asample exception approval form 300 accessible via the outsourced supplychain tool is illustrated in FIG. 3. A requesting entity enters theinformation as indicated on exception approval form 300 andelectronically transmits the form to the appropriate recipient.Recipients providing approval may be selected by management personnel ofenterprise system 150 and may include individuals from OSC group 110.Exception flow guidelines or business rules for determining whenexceptions may be appropriate can also be customized. Criteria used todetermine preferred sourcing strategies may be include factors such aswhether the parties to the sourcing arrangement (e.g., contractmanufacturer, supplier) are existing trading partners of enterprisesystem 150 or whether they are new. For example, FIG. 4 illustrates asample configuration of preferred sourcing according to the status ofthe trading partner(s). The information available for assessing thebenchmarks for these items can be obtained from a variety of sources viathe outsourced supply chain tool, a sample of which is shown in FIG. 5.

[0033] The outsourced supply chain tool further enables operationalprocess measurements to be gathered in order to ensure that theoutsourced supply chain process is operating efficiently andeffectively. This in accomplished in part, via DCF database 122 ofFIG. 1. DCF database 122 allows for the extractions of contractmanufacturer-specific data including part numbers, supplier splitpercentages, and appropriate pricing (e.g., contract price for ‘buy offcontracts’ parts, OEM sell price for price-masked parts, etc.). Theinformation is segregated for each contract manufacturer and the datamay be sent electronically to the contract manufacturer'spassword-protected mailbox. The information contained therein may beused by the contract manufacturer to generate purchase orders asrequired by the price protection plan in effect.

[0034] The outsourced supply chain tool additionally enables OSC group110 to monitor the ordering patterns of the contract manufacturers toensure compliance with the terms and conditions set forth in themanufacturing agreement. Any disparities noted between the type andnumber of parts ordered by the contract manufacturer and the type andnumber of parts indicated as necessary by the outsourced supply chaintool may addressed and resolved by the parties via this vehicle.Orderbooks are available through the tool whereby orders placed in theOSC system via contract manufacturers around the globe can beconsolidated for greater visibility and price leveraging.

[0035] As described above, the present invention can be embodied in theform of computer-implemented processes and apparatuses for practicingthose processes. The present invention can also be embodied in the formof computer program code containing instructions embodied in tangiblemedia, such as floppy diskettes, CD-ROMs, hard drives, or any othercomputer-readable storage medium, wherein, when the computer programcode is loaded into and executed by a computer, the computer becomes anapparatus for practicing the invention. The present invention can alsobe embodied in the form of computer program code, for example, whetherstored in a storage medium, loaded into and/or executed by a computer,or transmitted over some transmission medium, such as over electricalwiring or cabling, through fiber optics, or via electromagneticradiation, wherein, when the computer program code is loaded into andexecuted by a computer, the computer becomes an apparatus for practicingthe invention. When implemented on a general-purpose microprocessor, thecomputer program code segments configure the microprocessor to createspecific logic circuits.

[0036] While preferred embodiments have been shown and described,various modifications and substitutions may be made thereto withoutdeparting from the spirit and scope of the invention. Accordingly, it isto be understood that the present invention has been described by way ofillustration and not limitation.

1. A system for facilitating supply chain processes in an outsourcedmanufacturing environment, comprising: a manufacturing entitycomprising: a server executing a plurality of applications including anoutsourced supply chain tool for implementing supply chain executionprocesses; a terminal in communication with said server via acommunications link; a data storage device in communication with saidserver via said communications link; a network link to a manufacturingdivision associated with said manufacturing entity, said manufacturingdivision procuring assembled products from a contract manufacturerpursuant to an agreement; and a network link to a plurality of tradingpartner systems, said trading partner systems including at least oneeach of: a contract manufacturer system; and a supplier system.
 2. Thesystem of claim 1, further comprising: a customer focus team system incommunication with said manufacturing entity, said customer focus teamsystem associated with said contract manufacturer system.
 3. The systemof claim 1, further comprising: a commodity team council system incommunication with said manufacturing entity, said commodity teamcouncil system associated with said supplier system.
 4. The system ofclaim 1, further comprising: a decentralized file database for providingsupply chain execution data specific to said contract manufacturersystem.
 5. The system of claim 1, wherein said supply chain executionprocesses include implementing a preferred price protection plangenerated via said outsourced supply chain tool.
 6. The system of claim1, wherein said supply chain execution processes includes implementing aset of business rules for directing a trading partner to perform anactivity, said activity including: directly procuring parts pursuant toa bid award; executing a purchase order for directly procured parts; andexecuting invoice and payment procedures for said directly procuredparts.
 7. The system of claim 1, wherein said supply chain executionprocesses includes executing an exception approval request form pursuantto a request to deviate from a preferred sourcing strategy.
 8. Thesystem of claim 2, wherein said customer focus team system performsadministrative services for said contract manufacturing system.
 9. Thesystem of claim 8, wherein said administrative services include:facilitating transfer and replenishment of components needed duringmanufacture; ensuring ongoing inventory demand issues are addressed andresolved; obtaining and providing metrics on outsourced supply chainparts and activities; assisting said contract manufacturing systemduring shortfalls of supplies; collaborating with said commodity teamcouncil systems relating to acquisition of critical parts; and providingassistance on matters related to import, export, and tax issues.
 10. Thesystem of claim 3, wherein said commodity team council system providesadministrative support to said supplier system.
 11. The system of claim10, wherein said administrative support includes: ensuring timelyplacement of purchase orders relating to supporting supplier systems;managing order books of said supporting supplier systems; providingoutsourced supply chain metrics relating to supply chain activities;escalating shortfalls identified for inventories of said suppliersystems; assisting said customer focus team systems in acquiringcritical parts; facilitating replenishment implementation and drive tocomplete drop shipment functions; resolving finance issues; visitingsaid supplier systems; providing support for other outsourced supplychain regions on unique supplier issues; providing input on supplierreport cards; and interfacing with council chairs on contract issues,geographical allocations, supplier credits, and letters to suppliers ontransfers.
 12. A method for facilitating supply chain processes in anoutsourced manufacturing environment, said manufacturing environmentincluding an original equipment manufacturer, at least one supplier andat least one contract manufacturer, comprising: selecting a preferredprice protection plan from a list of plan choices in response toanalysis and award of a contract manufacturing bid resulting in anagreement; executing an outsourced supply chain tool for implementingsaid plan, comprising: placing a purchase order with a contractmanufacturing entity in accordance with said agreement via saidoutsourced supply chain tool; filtering out parts listed on saidpurchase order flagged for special execution as directed by saidpreferred price protection plan; placing a second purchase order forflagged parts with a supplier designated by said original equipmentmanufacturer, said second purchase order containing instructions forproviding said flagged parts to said contract manufacturer; coordinatingdelivery and payment transactions for said flagged parts; coordinatingdelivery and payment transactions for finished products; monitoringassociated activities of said original equipment manufacturer, said atleast one contract manufacturer, and said at least one supplier; andresolving issues relating to said associated activities.
 13. A storagemedium encoded with machine-readable computer program code forfacilitating supply chain processes in an outsourced manufacturingenvironment, said manufacturing environment including an originalequipment manufacturer, at least one contract manufacturer, and at leastone supplier, the storage medium including instructions for causing acomputer to implement a method, comprising: selecting a preferred priceprotection plan from a list of plan choices in response to analysis andaward of a contract manufacturing bid resulting in an agreement;executing an outsourced supply chain tool for implementing said plan,comprising: placing a purchase order with a contract manufacturingentity in accordance with said agreement via said outsourced supplychain tool; filtering out parts listed on said purchase order flaggedfor special execution as directed by said preferred price protectionplan; placing a second purchase order for flagged parts with a supplierdesignated by said original equipment manufacturer, said second purchaseorder containing instructions for providing said flagged parts to saidcontract manufacturer; coordinating delivery and payment transactionsfor said flagged parts; coordinating delivery and payment transactionsfor finished products; monitoring associated activities of said originalequipment manufacturer, said at least one contract manufacturer, andsaid at least one supplier; and resolving issues relating to saidassociated activities.